In Denmark, two forms of contracts are used in the business of construction. The traditional construction contracts are made on the ground of AB 92. These terms are a set of standard terms that are used in Danish construction. These types of contracts are developed in corporation with participation of both builder and contractor so that the terms are developed in a fair manner to both parties. The other way to form construction contracts in construction is called partnering. Partnering is a form of strategic alliance, which can be used in most businesses. However, in Denmark partnering is mostly used in construction and has been used in the past 10-15 years. Partnering is grounded on concepts such as mutual respect, corporation and trust. In the literature supporting partnering, the traditional construction agreements are often described as outdated. For example, partnering agreements are often described as an agreement with fewer conflicts and more efficient corporation than the traditional agreements. This results in a more optimal outcome in favor to the partnering parties. The goal of this thesis is to study these hypotheses by describing the differences between the two types of contracts and investigate which contract or which part of which contract is most efficient. In order to reach my goal, I will examine and analyze literature, legislation and reports that support either the traditional construction agreements or partnering agreements. My results show that the two types of contracts are shy of differences and the differences that occur mostly fall out to the advantage of the partnering agreement. The parties of the partnering agreement are bound to a high level of loyalty and focus at all times on constructive corporation, which may result in a more efficient outcome statistically. Nevertheless, this is extremely difficult to demonstrate as each construction can be very different. The conclusion is that Parties that wish to use a partnering agreement are not guaranteed a more successful construction but may have more success due to the high level of loyalty and corporation.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||71|